Construction and Property Corner ::: 02 August 2023

Wed Aug 2 11:17:13 CAT 2023

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Construction and Property  Corner ::: 02 August 2023 

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ü  Hwange unit 7 and 8 completion charms locals

ü  Firmcare Construction to raise money for distressed properties

ü  Construction to close block of Elm Street for a month

ü  US construction spending rises strongly in June

ü  Construction contract for El Salvador's national stadium reportedly close to being awarded

ü  Alabama construction company expands into Tampa

ü  Bridge construction set to begin on Highway 49

ü  Six reactors approved for construction in China

ü  14Trees launches first 3D printer for construction made in Africa

ü  Infrastructure Investments to Power Africa’s Mineral Market

ü  Green buildings in South Africa get a $230m boost

ü  About 25 projects to fix load shedding are in construction – Ramokgopa

ü  Russia-Africa summit: African countries embracing partnership for devt.

ü  Safeguarding South Africa’s Mining and Construction Industries from Fraud

ü  Angola: Construction of Sonangol Research Centre in Final Stage

 <https://www.willdale.co.zw/> Hwange unit 7 and 8 completion charms locals

THE completion of the US$1,5 billion Hwange Power Station Unit 7 and 8 expansion projects has excited locals in the coal mining town where stakeholders say they are already feeling the positive impact of the investment before its official commissioning by President Mnangagwa tomorrow.

The formal commissioning event would be a milestone event for the 600MW capacity project facilitated by the Second Republic as part of its bold steps to address the country’s power challenges and boost productivity.

President Mnangagwa officiated at the ground-breaking ceremony for the project on June 28, 2018 and despite the Covid-19 outbreak, which affected progress, the project is now complete, with Unit 7 passing all tests last week and Unit 8 supplying the grid consistently but still to undergo final tests.

The coming onstream of the two units has significantly reduced load shedding across the country. The Hwange expansion project is the country’s biggest energy investment project since independence in 1980 and among the largest energy projects in Africa in the past two decades.

As owners of this national asset, the Hwange community is the biggest beneficiary after more than 3 000 locals were employed during construction works and the provision of key supplies.

Greater Whange Residents Trust coordinator, Mr Fidelis Chima said the whole community was excited following completion of the project.

“The thermal power station expansion project is a huge development that has created thousands of jobs for locals and improved availability electricity across the country,” he said.

“Everyone is happy that load shedding will soon be a thing of the past and can’t wait for the commissioning,” said Mr Chima.

He said the local community was already enjoying the immediate benefits of the project but expect more.

“We have those that were living near the plant who have to be moved to prevent being affected by coal-related risks and they need to obtain value from their relocation,” said Mr Chima.

Matabeleland North Provincial Affairs and Devolution Minister Richard Moyo

Commenting on the project impact, Matabeleland North Provincial Affairs and Devolution Minister Richard Moyo said his province was a major beneficiary of the Second Republic’s major projects.

He said preparations for the commissioning of the Hwange expansion project were progressing well.

“We are busy preparing and we are more than ready as a province for the President to come and commission Unit 7 and 8 on Thursday. Everything is on course and teams are busy on the ground,” said Minister Moyo.

“This is a huge project, which has immense ripple effects on all sectors of the economy and Matabeleland North is proud to be the host of such big projects. There are huge benefits coming through various projects by the Second Republic in all sectors.

“With this commissioning, there will be no load shedding and even agriculture production will increase while clinics that have been built by this Government will also get connected to the grid,” said Minister Moyo.

Construction work at Hwange Thermal Power Station Unit 7 and 8 expansion project

Energy and Power Development Permanent Secretary Dr Gloria Magombo is on record saying Zimbabwe is steadily moving towards energy sufficiency and will eventually export excess power to other countries.

In recent months, Zimbabwe has been enjoying increased power generation as a result of output from Unit 7 and 8-chronicoe.c.zw

Firmcare Construction to raise money for distressed properties

Firmcare Construction, a local investment company, is seeking to raise US$2,5 million for re-development of distressed properties, according to a note to investors seen by this publication.

Known as the Product Distressed Investment Strategies Fund, the instrument offers zero-coupon, two-year bond with a target yield to maturity of 9,5 percent.

The instrument is an asset-backed corporate bond with a face value of US$1 000 per bond.

Minimum Investment is US$1 000, while bond price is US$833.33

“Firmcare must estimate the fair value of the properties and upside potential post restructuring and development.

“This investment strategy is also attractive to pension funds that are in distress as they can invest in cash or in specie for a 12- 24-month horizon in which they can unlock liquidity and interest income from the bond,” said Firmcare.

The funds raised will capacitate development of real estates projects.

“The fund seeks to provide an absolute return and liquidity to investors by investing in real estate development.

“Firmcare Construction will achieve its returns by picking real estate assets showing early signs of distress

(diminishing capacity to provide liquidity to owners), re-design the asset and develop residential or commercial property in demand.

“Firmcare can buy these real estate properties at a discount to their eventual value because the owners may not have the expertise and patience to go through a lengthy development or restructuring process.”

Some people use their investment in property as a store of value.-ebusinessweekly

Construction to close block of Elm Street for a month

The 100 block of Elm Street will close for sidewalk improvements, pedestrian railing and curb ramp work. Improvements will include new granite curbs, concrete sidewalks and other improvements for pedestrians.

Work will begin on Aug. 3, with the block closing for thru traffic between Floral Avenue and Chestnut Street, with only people who live along Elm and emergency responders allowed vehicular access, according to the city’s announcement. Detours will be posted.

“People driving should use the detour or alternative routes and should expect additional travel times, especially in getting through the West Hill neighborhoods,” reads the city’s announcement. “The city encourages commuters to flex travel times, ride-share, and take public transport whenever possible.”

The work is scheduled to be done Sept. 1, but that is subject to change.

US construction spending rises strongly in June

(Reuters) - U.S. construction spending increased solidly in June and the prior month's data was revised higher, boosted by outlays in both single and multifamily housing projects.

The Commerce Department said on Tuesday that construction spending rose 0.5%. Data for May was revised higher to show construction spending surging 1.1% instead of 0.9% as previously reported. Economists polled by Reuters had forecast construction spending increasing 0.6%.

Construction spending advanced 3.5% on a year-on-year basis in June. Spending on private construction projects increased 0.5%, with investment in residential construction rising 0.9% after rebounding 2.9% in the prior month.

Private construction spending had surged 1.3% in May. Spending on single-family housing projects surged 2.1% in June.

Though the housing market has taken the biggest hit from the Federal Reserve's fastest monetary policy tightening cycle since the 1980s, an acute shortage of single-family homes available for sale is driving construction.

That helped to limit the pace of contraction in residential investment in the second quarter.

The construction spending report showed outlays on multifamily housing projects increased 1.5% in June. There is, however, limited scope for multifamily construction to continue rising. Apartment vacancy rates are rising and the stock of multifamily housing under construction is at a record high.

Spending on private non-residential structures like factories was unchanged in June as a rise in manufacturing, commercial and lodging was offset by declines in outlays on healthcare and power plants.

Efforts by President Joe Biden's administration to bring semiconductor manufacturing back to the United States are boosting factory construction, underpinning business investment and the overall economy.

Spending on public construction projects gained 0.3% after advancing 0.7% in May. State and local government spending rose 0.3% while outlays on federal government projects jumped 0.8%.

The Thomson Reuters Trust Principles.

Construction contract for El Salvador's national stadium reportedly close to being awarded

Construction of El Salvador’s new national sports stadium, financed by a donation agreed with China in 2019, will start in the coming months, according to the country’s ambassador to Beijing, Aldo Álvarez.

“The stadium´s tender is at the contract awarding stage because one company did the design and another one will build it,” Álvarez was quoted as saying by daily El Economista, without giving a precise date. “The design has been completed and the construction is close to being awarded.” 

The construction contractor will be defined by China, according to elsalvador.com news outlet, and work is expected to last approximately four years. 

The stadium could be built on the grounds of the old military academy – which will be rebuilt in another location – in San Salvador municipality Antiguo Cuscatlán, the president of the national sports institute (INDES), Yamil Bukele, said in January.

President Nayib Bukele released some more details at the end of 2021. “The new military academy will have double the space and better facilities. El Salvador’s national stadium will have capacity for 50,000 fans, all seated (Cuscatlán stadium has the capacity to seat 34,000 according to the new rules released by FIFA),” he said on his Twitter account in December that year.

The design of the new stadium was tendered out by the Chinese government and was ready by the end of 2021. 

Other projects that are part of the cooperation agreement between China and El Salvador include the new national library and La Libertad port, which according to Álvarez are close to being completed. 

The Ilopango lake water treatment plant – another project agreed with China – will also see the start of construction soon. 

(Source: Presidency of El Salvador).

Alabama construction company expands into Tampa

Hoar Construction, an 83-year-old Alabama company, is opening an office in Tampa, its second in the state.

The company has been covering the state out of Orlando for about 25 years, but with growth along the West Coast, particularly in Tampa and Sarasota, it saw the need to expand.

Michael Parks, a senior vice president for Hoar, says in a statement that with a growing workload in the market, it was in the company’s best interest to have permanent presence. 

Among its projects in the area is Cordelia, a development at the Quay in Sarasota.

The company, according to the statement, got its start working in Florida in the 1960s and opened its first office here in 1998. 

It began focusing on the Tampa market in 2021 when it hired a project executive — Matt Valentine — to spearhead sales in the region. Valentine “will continue to guide the direction and growth of this new office.”

With the Tampa office, Hoar will have 10 offices nationwide. Its clients are in the cultural, entertainment and hospitality sectors and the company currently has projects building for healthcare systems and multifamily developers.

UK to back plans to speed up construction of power networks

The government is set to back plans intended to halve the 14 years it currently takes on average to deliver the big electricity transmission projects needed to overhaul the UK’s energy system.

Energy secretary Grant Shapps is expected this week to publish and endorse a report by industry veteran Nick Winser on how Britain can speed up the construction of electricity networks.

Colleagues of Shapps said that he would welcome Winser’s proposals, part of efforts to reassure energy companies that he will remove regulatory barriers to facilitate their investment in new projects.

The minister will host leading energy companies at a meeting in Downing Street on Wednesday and is expected to face a chorus of complaints over planning delays associated with new renewable energy projects.

“We will be making the case for low carbon energy and all the stuff we would like to see happen to deliver it,” said a representative of one company which is due to attend. 

The proposed shift away from fossil fuels and towards wind turbines, heat pumps and electric cars requires a huge overhaul of infrastructure to generate electricity and move it to where it is needed. 

The government wants to decarbonise the electricity system by 2035, while Labour has said it will try to do so by 2030, if the party wins the next general election.

Winser was appointed the UK government’s first “electricity networks commissioner” last year with a mandate to speed up the delivery of big transmission projects. 

He told MPs in June that he expected to be able to set out ways to halve the time for delivery of projects from 14 to seven years.

“The 14 years is only a notional number, by the way — in some cases it has taken substantially longer,” he added. “I am very pleased to be reporting that we think that the process should be done in seven years.”

Winser told MPs that there should be more strategic planning, “comprehensive and transparent” information to communities as well as a system that allowed them to benefit directly if new power lines went through their areas.

National Grid, the FTSE 100 company that owns and operates Britain’s main electricity network, in May called on the government to reform the planning system so that new clean energy projects can be delivered faster. 

“The scale of the transformation needed over the next decade and beyond is a level not seen for generations,” John Pettigrew, the chief executive of National Grid, said at the time.

“Incremental change will not be sufficient — we need a transformative approach.”

Oil and gas companies including Shell and BP are due to attend Wednesday’s meeting, where Shapps is expected to urge them to invest in the UK North Sea.

Rishi Sunak on Monday also backed the granting of more than 100 new oil and gas exploration licences in the North Sea.

Shapps believes the government’s commitment to renewable energy and to carbon capture and storage technology, to help lower UK emissions, will provide business with the certainty it needs to invest in Britain.

However, the US is offering substantial tax breaks to lure investment in energy schemes across the Atlantic.

Shapps will use the meeting to reassure the industry that the government will work with the police and the civil nuclear constabulary to stop protesters from disrupting the country’s power supply.

Bridge construction set to begin on Highway 49

JONESBORO, Ark. (KAIT) - Construction will soon begin on a heavily trafficked corridor in Northeast Arkansas.

Crews with the Arkansas Department of Transportation are going to be starting work on a bridge preservation project along Highway 49 from County Road 702 to the Brookland city limits.

This will mean certain lanes will be closed. As Brad Smithee with ArDOT said, this was an important project.

“We put aggregates on it and what that all does is seal that deck from letting water, chloride, salt and all these bad things into the concrete and it just preserves and prolongs the life of a bridge,” Smithee said.

Unlike the projects on Red Wolf Boulevard in Jonesboro, this work will be done during the day and ArDOT will close one lane at a time.

Work is expected to be completed within the next two weeks.

Six reactors approved for construction in China

China's State Council has approved the construction of six nuclear power units: units 5 and 6 of the Ningde plant in Fujian Province; units 1 and 2 of the Shidaowan plant in Shandong Province; and units 1 and 2 of the Xudabao plant in Liaoning Province.

The approvals, made at a State Council executive meeting on 31 July chaired by Premier Li Qiang, mark the first approvals for Chinese nuclear power projects so far in 2023. In 2022, a total of 10 new reactors were approved.

"Safety and quality will be the top priority in the construction of these projects," the State Council said in a statement.

In a statement to the Hong Kong Stock Exchange, China General Nuclear (CGN) said units 5 and 6 of the Ningde plant would feature Chinese-designed HPR1000 (Hualong One) pressurised water reactors.

"Currently, the company and Ningde Second Nuclear Power Co Ltd are carrying out various preparatory work for the construction of Ningde unit 5 and unit 6 in an orderly manner," it said. "Construction will begin when the Permit for Nuclear Power Station Construction has been obtained from the National Nuclear Safety Administration."

CGN noted Ningde was the first nuclear power plant to be constructed and put into operation in Fujian Province. The plant currently comprises four 1018 MWe CPR-1000 reactors, which began commercial operation between April 2013 and July 2016.

"As of 30 June 2023, the cumulative on-grid electricity of the four units in the first phase of the project is 257.9 billion kilowatt-hours," it said. 

CGN also said approval had been received for two Hualong One units as units 1 and 2 of the Shidaowan plant "under Huaneng Group, which is fully participated in the project construction by CGN".

China Huaneng noted the two units have already "undergone a comprehensive safety assessment review and been incorporated into the national plan". It added: "The expansion project of Shidaowan Nuclear Power Plant Phase I is the second large-scale pressurised water reactor nuclear power project developed by China Huaneng Holdings after the Phase II project of Changjiang Nuclear Power Plant."

The Shidaowan site is already home to the demonstration High Temperature Gas-Cooled Reactor-Pebble-bed Module (HTR-PM), which reached full power operation for the first time in December 2022. The HTR-PM features two small reactors that drive a single 210 MWe turbine. It is owned by a consortium led by China Huaneng (47.5%), with China National Nuclear Corporation (CNNC) subsidiary China Nuclear Engineering Corporation (32.5%) and Tsinghua University's Institute of Nuclear and New Energy Technology (20%), which is the research and development leader.

Meanwhile, CNNC subsidiary China Nuclear Power Co Ltd informed the Shanghai Stock Exchange that it had received approval for units 1 and 2 of the Xudabao (also known as Xudapu) plant. While not disclosing the reactor design planned for the two units, it said each unit would have a capacity of 1291 MW.

"CNNC Liaoning Nuclear Power Co Ltd, which is controlled by our company, is the owner unit of the approved project, responsible for project investment, construction and operation management," CNNC noted. "At present, the project site is steadily and orderly promoting various preparatory work before the start of construction."

The Xudabao project was originally expected to comprise six Chinese-designed CAP1000 reactors, with units 1 and 2 in the first phase. Site preparation began in November 2010. The National Development and Reform Commission gave its approval for the project in January 2011. China's National Nuclear Safety Administration announced its approval of the site selection for Xudabao units 1 and 2 in April 2014. However, construction of those units has yet to start.

However, with a change in plans, construction of two Russian-supplied VVER-1200 reactors as Xudabao units 3 and 4 began in July 2021 and May 2022, respectively.

Construction of the six approved units represents an estimated total investment of CNY120 billion (USD16.8 billion), China Daily reported.

14Trees launches first 3D printer for construction made in Africa

14Trees, a joint venture between Holcim and British International Investment, has announced the launch of its new construction-ready 3D printer, Iroko. The 14Trees printer specialises in single to two-storey residential and commercial applications and it will improve construction speed, cost, and flexibility – scaling up digital automation to build resilient and affordable housing, education infrastructure and commercial real estate worldwide.

The real estate sector is responsible for 40 percent of greenhouse gas emissions, with the bulk coming from manufacturing raw materials, packaging and transportation. 14Trees is committed to reducing the carbon footprint of buildings. This innovative new technology and approach will reduce CO2 emissions compared to standard methods of cement production, contributing to the United Nations’ Sustainable Development Goals on Industry, Innovation, and Infrastructure (SDG 9) and Sustainable Cities and Communities (SDG 11).

Commenting on the new innovation by 14Trees, François Perrot, Managing Director, 14Trees said: “As the global infrastructure sector experiences an industrial revolution, the construction space is under more pressure to boost performance, work towards a net-zero future, and fulfil the needs of an evolving real estate and housing sector. Our 14Trees printer is a robust solution to maintain affordability and deliver on structural performance. We’re enhancing the sustainability and profitability of 3D printing for construction – a sector positioned for yield and growth.”

Miljan Gutovic, Region Head for Europe, Holcim commented: “I am excited to see 14Trees shaping the future of construction. This innovation will help accelerate 3D construction printing around the world, fully aligned with Holcim’s mission to decarbonise building at scale.”

Abhinav Sinha, Managing Director and Head of Technology and Telecoms, BII said: “We are thrilled by the ground-breaking milestone that 14Trees has achieved to innovate 3D construction methods in Africa. This latest innovation will help to increase the availability of affordable housing, which is urgently needed on the continent, and also to decarbonise the construction sector. This goes to the heart of our mandate which is to create  productive, sustainable and inclusive outcomes and improve the lives of people in Africa.”

The 14Trees printer is designed to deliver a competitive commercial solution for contractors in multiple markets – enabling long-term investment into the automated construction space and opening up global access to state-of-the-art construction methods.

Construction 3D printing brings a transformative impact to people’s lives through the building of critical infrastructure, such as affordable housing and schools, and forms part of 14Trees’ plan to drive innovation in construction and further develop 3D printing technology in developing economies. The 14Trees printer will be delivered in Q4 2023.

Infrastructure Investments to Power Africa’s Mineral Market

Infrastructure investment in southern Africa is expected to be crucial for supporting the region’s mineral exports and production. With 30% of the world’s mineral reserves in Africa, including cobalt, copper, manganese and lithium, there is a growing need for essential minerals to power the green revolution. To fully realize the potential of these lucrative minerals and avoid the resource curse, southern African governments must prioritize substantial infrastructure expenditures, particularly in transportation and processing facilities, which are critical components of the mining value chain.

Infrastructure Investments Improve South African Exports

Despite its mineral wealth, South Africa faces considerable hurdles in its mining industry due to infrastructure constraints. Transnet, the state-owned rail and port operator, has been dealing with inefficiencies in managing coal and bulk exports, which have been worsened by theft, illegal mining and labor strikes. Kumba Iron Ore, a significant industry participant, has even revised its output forecast downward owing to a shortage of freight trains to transport its iron ore production to ports. Investors and bankers are concerned about the lack of locomotives and the imminent risk of stage eight load shedding, which might impose constraints on Transnet to encourage much-needed reform.

As such, the South African government is taking proactive initiatives to improve the country’s railway system in order to overcome these infrastructural challenges. Measures include the implementation of the National Rail Policy, which aims to modernize and restructure the rail industry, allowing third-party access to the network. As part of this approach, the government is developing a Transnet Roadmap and intends to appoint a new Infrastructure Manager for the rail network by October 2023. Transnet is also actively trying to resolve challenges associated with securing required locomotives from Chinese manufacturing giant CRRC.  

The Lobito Corridor: A catalyst for mineral development

The Lobito Corridor intends to overcome the logistical and infrastructural difficulties that impede the southern African mining sector. The project comprises a railway connecting the Democratic Republic of Congo and Zambia’s copperbelt to international markets via Angola’s seaport of Lobito, and has the potential to boost all three countries’ economies. The Lobito Corridor is a crucial export route and is set to catalyze both mineral and economic growth. Spearheaded by the Lobito Atlantic Railway – a consortium comprising multinational commodities firm Trafigura, global construction firm Mota-Engil and independent rail operator Vecturis SA – the project will enhance export efficiency while reducing time taken from extraction to port.  

Enhancing Value Addition through Policy

Namibia and Zimbabwe have adopted a strategic approach to addressing their mining infrastructure challenges. Zimbabwe implemented a prohibition on illicit artisanal mining as well as unprocessed mineral exports in December 2022, capitalizing on its position as the largest holder of hard rock lithium deposits, which are crucial for clean energy technology. In June 2022, Namibia adopted a similar ban, expanding it to include rare earth minerals such as dysprosium and terbium, which are required for electric vehicle batteries and wind turbines.

With these bans, Zimbabwe and Namibia are hopeful that they will encourage private sector investment to develop in-country processing facilities. This strategy has already shown results, with two lithium processing plants commencing production in Zimbabwe. Chinese mining conglomerate Sinomine Resource Group completed the construction of a dual lithium processing plant at the Bikita mine while Prospect Lithium Zimbabwe commissioned its $300 million lithium processing plant at the Arcadia open-pit lithium mine.

Establishing the Critical Minerals Value Chain of the Future in Africa represents the theme of the upcoming Critical Minerals Africa summit, taking place October 17–18 in Cape Town. The summit brings together governments and business leaders to explore ways to solve logistical and infrastructure challenges, and represents the deal-signing platform for the continent’s mineral industry. For more information, visit www.criticalmineralsafrica.com or contact james at energycapitalpower.com

Green buildings in South Africa get a $230m boost

To support the development of certified green buildings in South Africa, the International Finance Corporation (IFC) has partnered with Absa Bank to help expand the bank’s residential and commercial loans and mortgage finance programme for buildings that are environmentally responsible and resource-efficient.

IFC will provide a loan of up to R4.5 billion (approximately $236 million) to support Absa’s strategy to expand its green buildings finance portfolio which will include new certified green buildings and mortgages.

This will enable the bank to increase access to green building finance for developers and individual home buyers.

In line with its climate strategy, Absa will use the investment to finance environmentally friendly green buildings certified under IFC’s Excellence in Design for Greater Efficiencies (EDGE) programme as well as similar green building certifications, which helps standardise the design and the certification for resource efficient and climate-friendly buildings.

Increasing investment in low-emissions buildings

Green buildings represent a significant low-carbon investment opportunity because they can save electricity and reduce water consumption.

An IFC study estimates that South Africa’s green building demand presents a $7 billion investment opportunity between 2016 and 2030. Although the supply of green buildings in the country is growing, the green building market is still at a nascent stage.

IFC estimates that the project will help reduce over 12,000 tons of emissions annually. The investment will also contribute to South Africa’s Nationally Determined Contribution (NDC) targets under the Paris Agreement to reduce GHG emissions by 42% by 2025.

“As a responsible corporate citizen, one of our strategic imperatives is to be an active force for good in everything we do, which is key to delivering true long-term value linked to our purpose,” said Punki Modise, Absa Group Chief Strategy and Sustainability Officer.

Have you read?

Green Buildings: Giving concrete shape to the smart city agenda

“The loan, which includes a performance-based incentive for clients, significantly enhances the resources we have available to support clients in making environmentally responsible and resource-efficient investments in commercial and residential developments, mainly focused on affordable housing.”

“Increasing funding for green buildings in South Africa can help the country address power and water shortages and support sustainable economic growth,” said Adamou Labara, IFC Country Manager for South Africa. “IFC’s partnership with Absa will make it easier for developers and individuals to access green building finance and speed the development of environmentally friendly buildings in the country.”

Building on investments in affordable housing

As part of the partnership, IFC will provide performance-based incentives to partly offset the greening and certification costs for green buildings and mortgages financed by Absa under the project, which will benefit end users in the form of reduced utility bills, such as power and water bills.

The incentives are funded by the IFC-UK Market Accelerator for Green Construction (MAGC) programme, which is sponsored by the UK, to scale green construction across emerging markets by incentivising financial intermediaries to develop and introduce new green building finance products.

IFC will support Absa with advisory services to improve its capacity to originate and manage loans for the development or retrofits of certified green buildings.

Absa will also leverage IFC’s expertise to gain further knowledge and enhance internal capacity to expand its green buildings business segment.

The investment builds on IFC’s R2 billion (approximately $124 million) loan in 2022, used to support Absa’s growth in affordable housing finance in South Africa.

It aligns with IFC’s strategy to enhance climate change resilience in South Africa by investing in inclusive and sustainable projects.

About 25 projects to fix load shedding are in construction – Ramokgopa

About 25 projects to fix Eskom's power blackouts issues are in construction, says electricity minister Kgosientsho Ramokgopa. 

Ramokgopa made the announcement this week, saying projects are under way to upgrade Eskom's infrastructure in the areas of generation and transmission to increase capacity and resolve load shedding.

“The 25 projects can unleash about 13 gigawatts of electricity into the grid. The work starts now to be connected by 2026 to ensure there is additional capacity. We need to ensure we expedite the projects and bring them online quicker so we can expand the grid capacity,” said Ramokgopa.

“These are the twin challenges [generation and transmission] we are facing at the moment and we must resolve to address load-shedding. Of course the issue of distribution must receive attention.”

Ramokgopa said the cold front in Gauteng at the moment will lead to higher demand.

“There's a cold front in the Gauteng area. It accounts for a significant amount of the load, about 25%. It is something that is worrying and you are expecting the demand is going to surge.

“If the improvements in relation to available capacity do not match the increases on the demand side, then the only corrective measure we have is load-shedding. I am hopeful we should be in a position to address that situation,” Ramokgopa said.

Gauteng temperatures this week will drop to 0°C with a maximum of 17°C.

Eskom announced it would reduce load-shedding to stage 1 at 5am on Wednesday.

The power utility attributed the drop in load-shedding stages to improved generation capacity on Tuesday.

“Stage 4 load shedding will be implemented from 4pm today until 5am. Thereafter, load  shedding will be reduced to stage 1 from 5am until 4pm on Wednesday due to a slight improvement in the generation capacity available. This pattern will be implemented daily until further notice. Eskom will communicate should any significant changes occur.”

– TimesLIVE

Russia-Africa summit: African countries embracing partnership for devt.

There now seems to be a shift from going cap-in-hand begging for aids to forging partnerships where hitherto African countries are known to kowtow to the U.S., China and Western countries for aids.

This was demonstrated at the recently concluded Russia-Africa Economic Summit 2023 where many African countries signed partnership agreements with the Russian government and some of its corporations.

The shift from aid to partnership underlined the Russia-Africa Economic Summit 2023 in St. Petersburg, Russia, with the host country seeing African countries as development partners.

Indeed, the words partnership and cooperation resonated throughout the panel discussions at the summit.

Russian President Vladimir Putin, had this to say about the summit: “We had a substantive and engaging exchange of views on the entire range of themes of strategic cooperation between Russia and African countries.

“We have identified the main areas for further joint work and outlined plans to strengthen foreign policy coordination and increase trade and investment flows, as well as industrial cooperation between Russia and the countries of the African continent.

“I firmly believe that the results we have achieved will form a good foundation for the further deepening the Russian-African partnership in the interests of the prosperity and well-being of our peoples.”

The participants declared their commitment to jointly building a new, fairer multipolar architecture of the world order based on the sovereign equality of states and mutually beneficial cooperation.

To demonstrate the shift, a panel session was aptly titled, ‘From Aid to Partnership: Working Together to Fight Epidemics,’ where Ms Anna Popova, Head of Rospotrebnadzor, noted that Russia and Africa had successfully cooperated in epidemic prevention.

“Cooperation between Russia and Africa is capable of moving from assistance to partnership between countries, which will help the continent to gain sovereignty in the field of biological security, strengthen its own potential and remove obstacles to economic development caused by infections,” noted Popova.

The focus of the session was how to ensure the independence of African countries from external assistance in biosecurity, as well as the possibilities of transition from importing anti-epidemic technologies to their development by African countries.

Ms Jane Ruth Aceng, Minister of Health of the Republic of Uganda, emphasised that the partnership would help to promote cooperation in epidemic control, build human capacity and ensure technology transfer.

>From internal mechanisms to battle epidemics to best practices in infrastructure development, the summit was an eye opener for many African leaders.

For example, Mr Nikita Stasishin, Deputy Minister of Construction, Housing and Utilities, Russia, said African countries could draw a lesson from the the experience of Russia’s construction sector.

Read also: Military coups in West Africa, Wagner group and threat to Nigerian democracy

In particular, he drew attention to the fact that, “today Russian developers compete not with the cost per square metre, but with the quality of the project.”

This implies, among other things, the creation of a comfortable environment during the integrated development of the territory.

Stasishin said: “On the instructions of the President, an infrastructure menu was launched. This is a huge amount of funds that go towards modernising engineering, transport, utilities and social infrastructure.”

At the same time, he noted the need for a scientific approach to the development of territories: “We have created a huge scientific base with technical solutions for the development of both agglomeration of million-strong cities and single-industry and small towns.

“This is something we could share with African countries.”

It appeared that many African leaders at the Summit heeded the counsel, with Mr Tafadzwa Muguti, Secretary to the administration of the president of Zimbabwe for Provincial Affairs and Devolution for Harare Metropolitan Province, speaking about the prospects for cooperation with Russia in developing the country’s transport sector.

““One of the opportunities to improve transport infrastructure is to intensify partnership relations with the Russian Federation.

“Through cooperation with Russian cities, we could create new masterplans for the development of municipalities,” she said.

Nigeria is not left out of the new wave of partnerships with Russia to develop key infrastructure as its Vice President, Kashim Shettima, engaged stakeholders during the summit to revive the Aluminium Smelter Company of Nigeria.

“The sooner we get this plant back to production, the better for everyone. We need to walk the talk; the Nigerian people deserve better,” Shettima said at a meeting with the management of Russian Aluminium Company, UC RUSAL, and other stakeholders on the sidelines of the Summit.⁣

The meeting was in furtherance of the efforts by the Federal Government to reactivate production lines at ALSCON by re-engaging UC RUSAL and other partners.⁣

Speaking after a presentation by the UC RUSAL management, Shettima noted the enormous benefits of the aluminum company to the economy in terms of energy transition, job creation and its impact on the development of small businesses.

⁣Ghana is also leveraging the Russia-Africa Summit to develop its transport infrastructure.

Mr Desmond Boateng, Chief Director, Ministry of Railways Development of the Republic of Ghana, said at the summit that the country had embarked on a 4,000 kilometre railway project to connect West African countries.

“We are ready to negotiate with the Russian private sector to find the best ways to create an effective mechanism for mutually beneficial cooperation within the framework of this large-scale project.

“Now 250 kilometres have been built, but when all the lines are built, the railway will provide links to Burkina Faso, Togo, Cote d’Ivoire and other countries on the African continent,” said Boateng.

To demonstrate their seriousness, some African countries signed numerous Memoranda of Understanding (MoU) and cooperation during the Russia-Africa summit.

This, as part of the Forum’s business programme, a memorandum was signed between Russian Export Centre (REC) and the Agency for Promotion of Investment and Exports of Mozambique (APIEX).

According to the agreements, the parties will organise business missions and educational events aimed at fostering business development and strengthening economic cooperation between the two countries.

“The memorandum is an important step in the development of economic ties between Russia and Mozambique.

“This cooperation will enable enterprises from both nations to effectively penetrate each other’s markets and bolster the irrespective positions.

“It is also planned to exchange information on major projects in order to attract companies,” said Nikita Gusakov, Senior Vice President of the REC.

He said special attention would be paid to the exchange of analytical materials on priority sectors of cooperation.

“This will enable the parties to stay abreast of current trends and developments in vital sectors of the economy.

“As a result, this collaboration will foster the creation of new opportunities for Russian exports.

“Currently, there is a balance in foreign trade turnover between the Russian Federation and the Republic of Mozambique, demonstrating the complementarity of exports and imports between the two nations.

“Russia remains a major supplier of agricultural and chemical products to the Mozambican market, while Mozambique is one of the suppliers of rare earth metals and tobacco products to Russia’s market,” he said.

In addition, a memorandum was signed with Multi-Services EtMateriel Industriel (MSMI) SARL (Cameroon).

The main objective of the agreement is to jointly promote Russian industrial equipment in the Central African markets, especially in Cameroon.

It is anticipated that REC and MSMI will engage in active information exchange concerning major government projects while also extending support to Russian companies aiming to enter the Cameroon market.

Currently, Cameroon is undergoing significant industrial growth and implementing crucial infrastructure projects, offering favourable opportunities for Russian companies to compete with other global players in this region.

“Cameroon is one of the leading economies in Central Africa and offers a wide range of investment opportunities. The volume of REC Group’s supported exports to Cameroon last year totaled 19.6 million dollars.

“The joint efforts of the REC and MSMI will allow Russian companies to increase their presence in this promising market and strengthen their positions,” said Dmitry Prokhorenko, Director for Development of the REC’s Foreign Network.

It appears REC is on a rampage, revving Russia’s shipments of mineral fertiliser to Africa.

Facilitating this increase is REC’s Senior Vice-President, Mr Nikita Gusakov, who spoke at the session, “Stabilising the Fertiliser Market to Eradicate Hunger in African Countries”.

Gusakov touched on increasing trade between Russia and Africa and the need to carry out settlements with African counterparties in currencies other than the dollar or euro and connect to alternative channels of communication between financial institutions.

He said some transactions were already being made in yuan, and in the medium term, the ruble may also be an option.

He added that the first contracts had already been concluded in Russia’s national currency.

According to him, to incorporate local currencies in a more systematic way, it will be necessary to develop financial infrastructure and the share of goods imported from Africa.

He said this would make it possible for more transactions to be conducted in the national currency later and gradually decrease the number of financial transactions carried out in the currency of a third party.

He added that trade deficit could also be offset by investment, with the financing companies received from exports to Africa being invested on the continent.

The Second Russia–Africa Economic and Humanitarian Forum, organised by Roscongress Foundation was, indeed, a game changer for many African countries, if they walk the talk.

Safeguarding South Africa’s Mining and Construction Industries from Fraud

South Africa’s economy stands on the pillars of industries like mining and construction, crucial contributors to its prosperity. However, their significance also makes them appealing targets for cybercriminals. Fraud and corruption are ever-looming threats that demand immediate attention, and companies operating in these sectors must be proactive in their efforts to combat this menace.

The mining industry, in particular, ranks among the most vulnerable sectors to fraud, leading to substantial revenue losses. PwC’s Global Economic Crime and Fraud Survey 2022 unveiled alarming statistics, indicating that 51% of organizations have experienced economic crimes like fraud and corruption in the past 24 months. As CFOs and executives grapple with this evolving landscape of fraud, it is essential to adopt comprehensive strategies to safeguard their companies and maintain financial stability.

Ryan Mer, the CEO of eftsure Africa, a Know Your Payee™ (KYP) platform provider, highlights the pressing need for vigilance and adaptability. He emphasizes that payment fraud, supplier fraud, and tender-related fraud pose significant risks to the mining and construction sectors in South Africa. Mer shares valuable insights and actionable tips to strengthen defenses against fraudulent activities in these industries.

Never neglect background checks

First and foremost, background checks on suppliers are non-negotiable. Mining and construction companies must carry out thorough screenings to ensure the credibility of their suppliers. Compliance with South Africa’s Mining Charter, which promotes inclusive procurement and supplier development, necessitates meticulous recording and reporting of these checks. Scrutinizing supplier directors, identifying politically exposed persons (PEPs) and sanctions, and establishing links between directors and employees are essential components of the verification process.

For companies dealing with international suppliers, verifying foreign supplier information may present challenges. However, they can leverage onboarding platforms and automated verification processes for local suppliers to enhance efficiency and reduce payment fraud risks. Comprehensive background checks not only ensure compliance but also help identify potential risks, thereby minimizing the likelihood of fraudulent activities.

Collaborate to reduce costs

Collaborative efforts can also play a pivotal role in cost reduction and improving fraud prevention. Mining and construction businesses can partner with specialized companies that offer extensive reports containing crucial supplier credibility information. To strike a balance between the costs of these verification reports and competitive pricing structures, collaborative contracts or integrated pricing solutions can be negotiated.

Employee training remains a critical aspect of fraud prevention. While digital security measures are essential, fraudsters are increasingly targeting people to bypass these defenses. Therefore, regular training updates are necessary to keep employees aware of the latest fraud trends and security protocols.

Keep training up to date

Automation is a valuable tool in minimizing risks associated with manual processes. However, it is essential to take the next step and integrate automated systems seamlessly. By adopting a Software as a Service (SaaS) solution, like eftsure, companies can enhance their processes and limit payment fraud risks. This integrated onboarding, verified master data management, and payment screening solution cross-reference payments with a verified bank account database, alerting organizations to potentially compromised payment details before the release of funds.

Angola: Construction of Sonangol Research Centre in Final Stage

Luanda — The completion of the construction works of Sonangol's Research and Development Centre is scheduled for September 2023, ANGOP has learnt.

The infrastructure, which provides for the sustainable development of the company and the Angolan oil and gas and mining sector, is located in the outskirts of Sumbe city, coastal Cuanza Sul province.

Currently, the Centre's works have already reached 92% of physical execution, according to the national oil company's radio programme "Ngol".

The infrastructure will ensure research, specialised training for staff in the areas of oil and gas, mining, renewable energies, with a focus on green hydrogen, biofuels and strategic minerals of the future.

The centre was recently visited by Sonangol's executive director, Joaquim Fernando, who noted the progress of the works.

The Sonangol Research and Development Centre will support other infrastructures, such as laboratories, administrative area, conference room, residential buildings, warehouses for the storage of samples, and a Data Centre considered to be of high performance.

A clinic, restaurants, a commercial bank and other infrastructures for technical support will also be built on the premises. NE/DAN/NIC

=ANGOP.

Invest Wisely!

Bulls n Bears 

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INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Heroes’ Day

Aug 14

Defence Forces Day

Aug 15

zIMBABWE

2023 harmonised elections

August 23

Companies under Cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

 <mailto:info at bulls.co.zw> 

DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from s believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and d from third parties.

(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:  <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell: +263 77 344 1674

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